Guernsey has announced plans to work with the global insurance and reinsurance industry in an initiative which aims to enable long-term green investments to be utilised as assets to meet long-term life insurance liabilities.
As part of a move to position itself as a “got to” jurisdiction for green investments, Guernsey announced a number of moves to develop and encourage investment products with a green focus, incorporating the domiciles expertise in investment, securities and insurance markets and services.
“The potential for green and sustainable finance is enormous and streams into major global initiatives,” commented Guernsey Finance Acting Director of Strategy Dr Andy Sloan.
“Action in this area builds on Guernsey’s strengths and expertise in private equity and infrastructure, supports other initiatives in areas such as impact investing, and supports a general repositioning of the island’s financial services offer,” he continued.
As part of this work, the Guernsey Financial Services Commission (GFSC) has announced plans to work with the global insurance and reinsurance industry to help companies leverage long-term green investments as an asset class that can meet long-term life insurance liabilities.
By making it easier for insurance companies to access long-term investments, Guernsey hopes that this will help insurance companies to offer sustainable long-term returns to policyholders, as well as broadening the investor base for green assets.
The GFSC is seeking interest and feedback from the industry, as it develops its new approach to regulatory life insurance solvency requirements.
